As part of an ongoing restructuring, Healthways, Inc. (NASDAQ:HWAY) has decided to monetize its business division called MeYou Health. The company neither revealed the buyer of the asset nor the value of the transaction. But Healthways said it is committed to continuing to work with MeYou even after the sale.
MeYou Health becomes the latest business to be dropped by Healthways as the company drives toward more internal efficiency. Late last year, the company sold its subsidiary called Navvis. The business was purchased by a former executive of Healthways.
The cost of restructuring
Healthways, Inc said that the ongoing restructuring will cost it $25 million to complete. But once the restructuring cloud is cleared, the company is hoping to generate significant savings of up to $45 million in the future. Those savings are expected to come through payroll slimming alongside other operational adjustments.
What about MeYou?
Before its divestiture, MeYou was 100% owned by Healthways. The business is engaged in creating innovative capabilities that are designed to improve well-being. MeYou was one of the assets at the center of activism campaign by North Tide Capital that culminated in the ouster of Ben Leedle as CEO of Healthways.
The company tapped Donato Tramuto to replace Leedle. Tramuto has been leading the restructuring, which is expected to simplify the company’s business structure to enable it to operate more efficiently and create more value for shareholders.
Partnering with MeYou?
Although Healthways decided to dispose of MeYou, it believes it is a great business. That explains why the management of HWAY said that they are committed to partnering with MeYou even after the asset changed hands.
According to Healthways, the sale of MeYou will not create a lapse in customer experience. HWAY’s solutions are used by insurers and employers interested in keeping their people healthy so that they can drive down healthcare costs.